The OECD-DAC has established international rules on what cooperation constitutes ODA and how it should be reported. Under the rules set by the DAC, ODA must meet the following three requirements: (i) it is provided by official agencies or their executive agencies; (ii) its main objective is to promote the economic development and welfare of developing countries; and (iii) it is concessional in character (in the case of loan aid, the terms of the loan [e.g., interest rate and repayment period] are set in favor of the recipient countries).

DAC countries provide development cooperation under the rules set by the DAC. However, the content of ODA implemented by major donors varies by country. This section outlines the aid provided by DAC donors, focusing on the G7 countries, based on their disbursements in 2019. Note 14

■ Aid Disbursements by Major Donors

ODA provided by DAC countries in 2019 (calculated by GE system) amounted to approximately $151,722 million. By country (GE system, percentage out of total ODA of DAC countries), the United States ranked first (approximately $33,492 million, 22.1%), Germany second (approximately $24,198 million, 15.9%), the United Kingdom third (approximately $19,393 million, 12.8%), Japan fourth (approximately $15,588 million, 10.3%), France fifth (approximately $12,211 million, 8.0%), the Netherlands sixth (approximately $5,292 million, 3.5%), Sweden seventh (approximately $5,205 million, 3.4%), Canada eighth (approximately $4,725 million, 3.1%), and Italy ninth (approximately $4,373 million, 2.9%), with the G7 countries occupying the top spots. Note 15

■ Sectors Aided by Major Donors

Disbursements in 2019 from the United States, the United Kingdom, Canada, France, and Germany were concentrated in the social infrastructure sectors, including education, health, and water supply and sewerage. The United States allocated more than 30% of its total ODA to emergency relief such as humanitarian assistance and food aid. On the other hand, in the economic infrastructure sectors, such as roads, bridges, railroads, communications, and electricity, Japan has the highest allocation with 52.1% of its total ODA, followed by France with 22.8%. Economic infrastructure assistance makes up a large share of Japan’s cooperation because Japan, with its postwar recovery experience, considers that, in order to achieve poverty reduction and other goals through sustainable economic growth in developing countries, it is essential first and foremost to establish economic infrastructure and support the self-help efforts of developing countries (Chart I-7).

■ Regions Aided by Major Donors

Whereas Japan’s ODA is primarily directed at the Asian region (approximately 61.1% of gross disbursements in 2019 [hereinafter the same]), Sub-Saharan Africa was the top recipient of aid from the United States, France, the United Kingdom, and Italy (32.1%, 30.8%, 28.1%, and 22.8%, respectively). The Middle East and North Africa was the top recipient of aid from Germany (22.2%). Note 16 In terms of percentage out of total aid disbursements from major DAC countries by region, the United States was the largest donor to Sub-Saharan Africa (32.7%), the Middle East and North Africa (28.6%), and Latin America and the Caribbean (29.0%). Australia provided 48.2% of total ODA to Oceania, while Germany accounted for 27.7% of total ODA to Europe, including the former Yugoslavia and Ukraine. As these figures indicate, the regional priority of each donor is also influenced by factors such as geographic proximity and historical background (Chart I-8).

■ Disbursements by Type of Assistance (2019)

By type of assistance, approximately 87% of ODA provided by all DAC countries in 2019 were grants (bilateral grant aid: approximately 50%; bilateral technical cooperation: approximately 10%; grants to international organizations: approximately 26%), and 13% were loan aid (bilateral: approximately 12%; loans to international organizations: approximately 1%). With the exception of Japan and France, major DAC countries implemented most of their ODA as grants (grant aid and technical cooperation) (Chart I-9).

Loan aid (e.g., ODA loan) accounts for a large share of Japan’s ODA because Japanese assistance aims to support developing countries’ self-reliant efforts to achieve economic growth. This is based on the idea that effective development cooperation requires awareness raising that development is not granted; rather, it is something developing countries take ownership of. From the viewpoint of developing countries, they carry out projects aimed at their social and economic development with the funds they have borrowed. This in turn encourages the countries to work hard on their projects. Japan’s cooperation strives to enable the people of developing countries to sustain and evolve the projects on their own even after Japan’s ODA loan projects are completed. This approach is unique to Japan, which places importance on self-help efforts.

1. Note 14: DAC Statistics final figures for disbursements in 2020 are to be published in or after March 2022.
2. Note 15: See Chart “ODA by DAC Countries (2019)” of Development Cooperation Reference Materials 2020 (in Japanese only) for details.
3. Note 16: See Chapter 3 Economic Cooperation of Other Countries, Section 3 “Overview of Economic Cooperation of Major Donors and Regional Organizations” of Development Cooperation Reference Materials 2020 (in Japanese only) for details.

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